Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



How Take-Two Interactive Hopes to Up Its Game

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Next Monday, Take-Two Interactive (NASDAQ: TTWO  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

The video game industry has been a tough place to be in recent years, as the growth of low-priced mobile gaming, and other alternatives to traditional console games, have threatened the business models of Take-Two and its peers. But with new upgraded consoles coming out, can Take-Two take full advantage of a gaming renaissance? Let's take an early look at what's been happening with Take-Two Interactive over the past quarter, and what we're likely to see in its quarterly report.

Stats on Take-Two Interactive



Analyst EPS Estimate


Year-Ago EPS


Revenue Estimate

$280.36 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Take-Two Interactive's earnings reach a new high score this quarter?
Analysts have been a bit pessimistic about Take-Two Interactive's near-term earnings prospects, having cut their estimates on the March quarter by $0.02 per share, and making a more dramatic cut of $0.16 per share for the current quarter. But the stock has done very well, rising more than 25% since early February.

The big news for Take-Two this quarter was the March release of its BioShock Infinite game. With favorable reviews, the game has sold extremely well, and analysts now expect the game to sell about 4.5 million copies in its first year.

But, in general, the video game industry continues to struggle. Despite new consoles expected in the PlayStation and Xbox line, the new Wii last November failed to generate much new buzz. Also, even though Take-Two rival Activision Blizzard (NASDAQ: ATVI  ) beat earnings estimates when it reported earlier this week, it suffered substantial losses in customer counts for its core World of Warcraft subscriber-based game, and shares actually fell following the release.

Moreover, the fight for the best game prospects is ultra-competitive. The recent victory of Electronic Arts (NASDAQ: EA  ) in gaining high-profile exclusive rights to produce Star Wars-themed games for Disney represents a major lost opportunity for Take-Two.

Still, Take-Two has its Grand Theft Auto V release later this year to count on for another boost of revenue. The company's delay of the release until September raised eyebrows when it was first announced in January, but given the performance of BioShock Infinite, the move was likely a smart one to space out its blockbuster releases.

In Take-Two's report, look for any signs of possible consolidation within the video game industry. At some point, game manufacturers should probably start combining forces to stand up to alternatives like mobile gaming. Otherwise, Take-Two will have to bet everything on the possibility that new game consoles will rescue an industry in decline.

While Take-Two is an interesting play in console gaming, investors following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. The Motley Fool's special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.

Click here to add Take-Two Interactive to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2424868, ~/Articles/ArticleHandler.aspx, 11/30/2015 5:12:31 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 2 days ago Sponsored by:
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 1.24 0.06%
NASD 5,127.53 11.38 0.22%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/27/2015 12:59 PM
ATVI $37.24 Up +0.01 +0.03%
Activision Blizzar… CAPS Rating: *****
EA $68.88 Down -0.63 -0.91%
Electronic Arts CAPS Rating: ***
TTWO $35.69 Up +0.07 +0.20%
Take-Two Interacti… CAPS Rating: ****